Forest and Woodworking Industry in Latvia

Industries

Chemistry, Pharmacy and Biotechnology

The Latvian chemical industry has a long history and is a cornerstone in today’s economy. Latvia has historically had a strong research, development, and manufacturing base in sophisticated chemical and pharmaceutical products. The industry, comprising of companies that produce industrial chemicals as well as pharmaceuticals, is central to the Latvian economy. Its importance was recently reaffirmed by the 2009 decision of the Latvian Cabinet of Ministers to include the chemical and pharmaceutical industry in the list of priority sectors essential for the economic development of the country.

The construction sector in Latvia, just like the EU and global construction industry, is undergoing significant changes. In 2018, the construction sector represented 7.1% of GDP. There are new requirements relating to environmental protection, energy efficiency, heritage preservation, and adaptation to modern society.

Latvian construction companies have proven their competitiveness in foreign markets and work well in different scales, ranging from general construction to specific installation works. Latvian manufacturers are also well known for the high quality and price competitiveness of their construction materials.

If you have become interested in Latvian design, you have two options, as do all researchers. The first option is to research the historic development of artefacts, symbols and function; the second is to trace the way creative people have solved and continue to solve problems in the design of diverse products as manufacturing, technology and public opinion have evolved under the influence of the environment and advances in communications.

Today more than 280 companies make up the Latvian electrical engineering and electronics (E&E) industry, which has strong historical traditions in Latvia. One of the most well-known Latvian inventions is the legendary VEF Minox miniature camera, the first of its kind in the world, invented at the VEF factory in 1937. Telephones or radios made in Latvia are still used and their brands are remembered fondly throughout the former Soviet republics. Today, the Latvian E&E industry is set to become one of the key high-value-added industries in Latvia thanks to the determined work of the government and industry professionals.

Throughout their long history, Latvians have always been a nation of skilled farmers and livestock keepers for whom the rhythms of life were dictated by the changing seasons and daily farm chores. The country’s proximity to the sea created a climate and conditions favorable for farming and motivated coastal dwellers to become excellent fishermen. Milk from Vidzeme dairy farms, fresh meat from Latgale and Kurzeme, fresh fish from the Baltic Sea, grain from Latvia’s granaries in Zemgale, berries, fruits, and vegetables from our forests, market gardens, and fields – taken together, these ingredients guarantee our highquality natural products.

With forests covering more than 50% of the country’s territory (almost double the world average), Latvia is one of the most forested EU member states. Over the last 80 years, the forested area has nearly doubled while standing volume has increased 3.8 times, reaching 668 million cubic metres.

The information and telecommunications technology (ICT) sector in Latvia began in the 1960s, when the Institute of Mathematics and Computer Science and the Institute of Electronics and Computer Science were founded. The latter institute developed expert technology for Soviet moon programs, and had 800 employees working on R&D projects. In 1992, with UNESCO support, Latvia established its first internet connection, after which internet and computer use expanded rapidly. These well-established institutes and stellar achievements prove the solid legacy and tradition of education, technology, and R&D in Latvia.

The Latvian mechanical engineering and metalworking industry goes back a long way and is a cornerstone of today’s economy. Today, the sector has been restructured to compete in the global marketplace, mostly with export-oriented contract manufacturing activities, increases in productivity, increases in management skills and competitive salary levels. Four fifths of the sector’s total output is exported. A significant part of European Structural Funds for economic development programmes are used for the reconstruction of infrastructure, modernization, invention of new technologies, innovations and staff training. In 2017, about 24,000 employees are serving the sector.

After the regaining of Latvian independence in 1991, the field of printing started to develop very quickly. During the last few years, graphic companies have prepared for the increasing level of competition in the media market. There are more than 400 printing companies in Latvia. The total output of the sector reached EUR 215 million in 2017, which is 2.6 % of the total output of Latvia’s manufacturing industry.

For centuries, the textile and clothing sector has been one of the most important in the Latvian economy. It has very culturally significant roots, mostly associated with natural materials, high quality, and a true-to-nature lifestyle and values. For centuries, textile products were also important export commodities in the context of the Hanseatic League and beyond.

Historically, Latvia has been one of the main transit points for both north-south and east-west trade flows. Its geographical location remains central to strategically relevant transportation flows connecting major world economies like the USA, European Union, Russia, the CIS and the Far East. The transit sector is one of the strongest industrial sectors in Latvia. This has been recognised by the government which has named transit as a key priority within the Latvian economy. Nearly 90% of turnover in Latvian ports, more than 80% of rail cargo, and the major proportion of oil and oil products transported via trunk pipeline systems is transit. More than 8% of Latvia's employees are engaged in the transportation and servicing of transit cargo. The importance of the transport, transit and storage sector in terms of GDP contribution is substantial at around 9.5% in 2018.

Latvia is internationally acknowledged as a country with a high level of biological diversity. Latvia’s natural resources are fairly limited, consequently industry and households will always be dependent on imports to some extent, particularly of oil, natural gas, coal, metals and minerals. There are significant deposits of quartz, dolomite, clay, sapropel and peat in Latvia.

Latvia is the leader of the share of renewables in total energy consumption within the EU.

Health tourism is already a rapidly growing sector within Latvian tourism and has very high export potential. The numbers of international patients arriving in Latvia to utilise a variety of medical institutions and services have been growing year on year, particularly from Scandinavia, the CIS and Western Europe.

Although Latvia is not known as a major producer of supplements and body care products, the pristine, wild nature of Latvia and the diversity of its unusual flowers and herbs, berries, etc. has inspired a number of Latvian entrepreneurs to create new and innovative products that stand out for their quality and unique properties.